Press Release of Virtual Seminar on “Credit Guarantee – Benefits & Opportunities to Support SME Development”
December 16, 2021Announcement
Credit Guarantee Corporation of Cambodia (CGCC) is organizing a virtual seminar on “Credit Guarantee – Benefits & Opportunities to Support Small and Medium Enterprises (SME) Development” today with support from the Ministry of Economy and Finance, Asian Development Bank (ADB), and the United Nations Capital Development Fund (UNCDF). The seminar brings together relevant stakeholders including the Government, Development Partners, Financial Institutions, and business representatives to discuss the benefits and opportunities of using credit guarantees to support business survival and expansion.
The extent to which credit guarantees can contribute to restoring the economy depends on the lenders’ and borrowers’ perspectives toward credit guarantees. The seminar, therefore, focuses the discussion on their perspectives toward credit guarantees. All speakers shared a common view that lack of collateral is one of the main challenges for businesses to access formal loans. They agreed that credit guarantees can support banks and Micro-Finance Institution (MFIs) to lend out more to businesses, especially those who lack collateral.
The seminar also digs into stakeholders’ ongoing efforts to improve SME access to finance for the economic re-opening in Cambodia. The Government has introduced many policy interventions to support SME access to finance. In addition, relevant stakeholders have spared efforts which include, among others, increasing financial literacy, introducing innovative financial solutions, and upgrading financial sector infrastructure. The panelists demonstrated their commitment to continue supporting SMEs’ access to financial services.
Prominent speakers in this seminar include the President of Federation of Associations of SMEs of Cambodia (FASMEC), Vice President of Cambodia Women Entrepreneurs Association (CWEA), President of Young Entrepreneurs Association of Cambodia (YEAC), Chairman of Cambodia Microfinance Association & CEO of AMK Microfinance, CEO of Canadia Bank, Deputy Director General of General Department of Policy of Ministry of Economy and Finance, and Senior Financial Sector Specialist from the ADB, and Senior Regional Technical Advisor from UNCDF, and CGCC’s management. This seminar attracted more than 300 participants from various institutions – Government, development partners, financial institutions, and business communities.
CGCC is a state-owned enterprise under the financial and technical guidance of the Ministry of Economy and Finance. CGCC’s mission is to provide credit guarantees to lenders on loans made to businesses. As of 10 December 2021, CGCC has provided guarantees for 173 loans with a total amount of over USD 20 million.
Phnom Penh, 16 December 2021
Credit Guarantee Corporation of Cambodia